Any arrangement between us and the Palestinians will be based on two criteria: security and recognition of Israel as a Jewish state,” Netanyahu added.

“Security, because no peace will last without a strong anchor of actual security on the ground, not on paper and not as a hazy international commitment,” he said. “The second thing is the recognition that Israel is the national state of the Jewish people.

“If we are asked to recognize a Palestinian state, it is both natural and appropriate that the Palestinians recognize the state of the Israeli people as a Jewish state.”

Netanyahu’s statements came a day after he expressed concern that Palestinian President Mahmoud Abbas would abandon the peace process, after the latter declared that he would not concede to Israel on a number of core issues and would not discuss recognition of Israel as a Jewish state.

“Israel can call itself what it likes,” Abbas told the East Jerusalem-based newspaper Al-Quds Al-Araby.

The Palestinian leader also said he would refuse to continue negotiations should construction resume in West Bank settlements.